Islamic Wealth Management: A Growing Trend

1. Maybank Islamic offers a comprehensive Islamic Financial Advisory Solutions

Islamic Wealth Management has gained popularity among customers in recent years as a tool to effectively manage their wealth and at the same time generating good returns. It covers all stages of one’s wealth management cycle from accumulation, protection to distribution. Islamic Banking institutions provide financial advisory solutions to ensure their clients’ income and assets are invested and managed prudently.

In Maybank Islamic, we assist the clients to achieve their goals in creating and maximizing their wealth. Achieving these goals would require the appropriate range of products and services under four key goals of wealth management: investment and wealth accumulation, retirement and retirement income, wealth and lifestyle protection and distribution of wealth.

Maybank Islamic’s products and services

  • Wealth creation through Deposit, Investment Account, Property Financing and other Islamic retail financing products.
  • Our Islamic Wealth Management solution consists of various types of Shariah compliant investment products with different risk-rewards profiles.
  • The preservation of wealth is through Takaful and the distribution of wealth is through Gifts (Hibah), Waqaf, Wasiat and Trusts.

The increased number of High Net Worth Individuals (HNWIs) and Affluent in Malaysia of late means, there is an increasing demand for wealth management services.

As at December 2015, Maybank Islamic has achieved 36% Islamic composition in term of Islamic HNW and Affluent Total Financial Asset (TFA) to overall Group HNW and Affluent TFA.

In the last financial year, Maybank Islamic has seen a strong growth in wealth management business and going into 2016, it continues to see an increasing number of HNW and Affluent clients making up its client base and also a further increase in AUM.

Innovation and Achievements

The introduction of Investment Accounts by Islamic banks arose from the enactment of the Islamic Financial Services Act 2013 (IFSA) by Bank Negara which distinguishes Investment Accounts from Islamic Deposits.

This differentiation allows customers to enhance their understanding of the product offerings by the Islamic Banking Institutions and are able to make an informed decision when making their choices in where best to invest.

In July 2015, Maybank Islamic had launched a Mudarabah Investment Account (IA) product which offers a new investment avenue with a strong value proposition and unique features to cater for a wider range of customer segments.

The IA is key milestone for Maybank Islamic, and further distinguishes the Bank from the competition with a strong value proposition for its customers.

Maybank Islamic’s IA offers customers potentially higher and more stable returns i.e. between 4 and 5 % per annum and the response so far has been very encouraging, having managed to attract both existing and new customers.

When investing in this account, customers can also take assurance of the Bank’s strong AAA ratings from both RAM and MARC, backed by an effective and robust risk management framework for all the bank’s products.

As at the end of December 2015 the IA fund has grown to RM17.6 billion for a period of only five months since its launch – a positive indicator that investors are always on the lookout for an opportunity to earn higher returns compared with the traditional deposits.

To further develop this new product offering, Bank Negara together with a few selected industry players has initiated a new shariah-compliant initiative in 2015, called the Investment Account Platform (IAP), and Maybank Islamic is one of the pioneer banks participating in this initiative.

The IAP provides opportunities to investors in financing entrepreneurial activities and developing viable SMEs. It also acts as a platform to attract institutional and individual investors including high net worth individuals to invest in the Islamic financial market.

Prior to that, in late 2013 Maybank Islamic became the first Islamic bank in Malaysia to provide offshore property financing facilities in foreign currency which offers high net worth and affluent clients opportunities in property investment in Britain. It allows Malaysian citizens and permanent residents to invest in offshore properties with the convenience of taking on the financing locally in Malaysia.

2. A Value Proposition for all

Staying true to our mission of humanising financial services, Maybank Islamic provides a holistic suite of segment driven offerings with differentiated services. As a recognition of our effort in serving the communities we won the “Best Private Bank for Islamic Services” at The Banker Global Private Banking Awards 2015.

Due to the growing trend and demand for Islamic Wealth Management, Maybank Islamic will continue its effort to develop various Shariah investment instruments to meet our customers’ needs. The ethical values embedded in these products and services make them appealing to everyone, regardless of race and religion.

Moving forward, Maybank Islamic foresees a huge potential and an opportunity for it to tap into and penetrate new markets for this high end segment.

Our mission is to be a leading Shariah bank that can offer exclusive Shariah Advisory to our clients and provide business referrals for comprehensive cross-border wealth accumulation offerings.

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